$60 Million Project to Bring Clean Drinking Water to 158,000 People in Southern Kyrgyzstan

More than 158,000 residents of Kyrgyzstan’s southern Osh Region are expected to gain access to clean drinking water under a new infrastructure project backed by the Eurasian Fund for Stabilization and Development (EFSD). The project was agreed during talks between Kyrgyz authorities and EFSD representatives, according to the Ministry of Water Resources, Agriculture and Processing Industry. The EFSD will provide a $60 million loan for the initiative, while the government will contribute $6.7 million in co-financing, bringing the total project cost to $66.7 million. The project will target 32 villages in the Kara-Suu and Uzgen districts of Osh Region, one of the country’s most densely populated areas. According to the ministry, only about 65% of the region’s population currently has access to safe drinking water. Approximately 158,000 residents continue to rely on aging water systems built between the 1950s and 1980s or on unsafe water sources. The project includes the construction and rehabilitation of more than 890 kilometers of water supply and distribution networks, the drilling of 33 artesian wells, the construction of 54 water reservoirs, and the installation of 11 pumping stations. Authorities say the upgrades will provide a stable and safe water supply to participating communities. The initiative also includes sanitation improvements, with 95 sanitation facilities in schools, kindergartens, and primary healthcare facilities scheduled for renovation. The project is expected to be implemented over five years, with the financing agreement due to be signed by the end of June. Access to clean drinking water remains one of Kyrgyzstan’s most pressing infrastructure challenges, particularly in rural areas. According to Bakyt Torobaev, who previously served as deputy chairman of the Cabinet of Ministers and minister of water resources, agriculture, and processing industry, the country requires approximately $1.2 billion in investment to resolve drinking water supply issues in 960 villages nationwide. Government data show that of Kyrgyzstan’s 2,014 villages, only 796 currently have reliable access to clean drinking water. Water supply systems are under construction in 258 villages, while 960 communities remain without adequate service.

Tajikistan Predicts Economic Slowdown Amid Declining Remittances

Tajikistan's economic growth is projected to decelerate to 7.5% in 2025, largely due to weakening domestic demand, according to the latest regional economic review by the Eurasian Fund for Stabilization and Development (EFSD). Migrant Remittances: A Key Factor The anticipated slowdown is primarily attributed to a decline in remittances from labor migrants, which have historically formed a substantial share of Tajikistan’s GDP. EFSD analysts forecast that from 2025 to 2027, the volume of transfers will gradually normalize after peaking between 2022 and 2024. Despite this decline, the EFSD maintains that Tajikistan’s balance of payments will remain stable, helped in part by reduced capital outflows, including foreign currency purchases. Previously, the World Bank reported that migrant remittances accounted for 45% of the country’s GDP in 2024, the highest proportion globally. By comparison, remittances made up 24% of GDP in Kyrgyzstan and 14% in Uzbekistan. The Asian Development Bank (ADB) expects this share to fall to 37% in 2025. Inflation Pressures Rise EFSD economists also warn of mounting inflationary pressures. Inflation is projected to approach the upper limit of the National Bank of Tajikistan’s target corridor, 5% with an acceptable deviation of ±2 percentage points. Over the medium term, inflation is expected to stabilize within the target range. Food prices remain the primary risk to price stability, the EFSD cautioned. Exports, External Risks, and Trade Barriers The ADB has also published a forecast supporting a more restrained outlook, highlighting falling global prices for Tajikistan’s key exports, metals and agricultural goods, including aluminum, as an added drag on growth. Additionally, regional trade barriers are posing challenges. Uzbekistan recently raised import duties on Tajik cement, a move seen by analysts as part of a broader trend of protectionist policies in neighboring countries. External conditions are also exerting pressure. Economic slowdowns in Russia and China, Tajikistan’s primary trading partners, could suppress both export revenue and remittances, the majority of which come from migrant workers in Russia. GDP Projections and Sector Breakdown According to the ADB’s baseline scenario, Tajikistan’s GDP growth is expected to slow to 7.4% in 2025 and 6.8% in 2026. In contrast, Tajik authorities aim to maintain growth at no less than 8%. In 2024, the economy grew by 8.4%, a 0.1 percentage point increase over the previous year. GDP totaled 153.4 billion somoni (approximately $14 billion). The sectoral composition of GDP included agriculture (22.8%), industry (16.9%), trade (15.2%), transportation (9.3%), construction (8.1%), taxes (9.4%), and other services (18.3%). Despite the projected slowdown, ADB experts remain cautiously optimistic. They cite sustained investment in energy and industrial sectors, expanded agricultural and service output, and continued, albeit diminished, remittance inflows as key factors that will support Tajikistan’s economic momentum.